Bitcoin (BTC) was stuck at $42,000 in Wall Street trading on January 29 as new exchange-traded funds (ETFs) began to outflow.
Bitcoin ETF comfortably absorbs GBTC outflows
Data showed that BTC price trend continues to retreat from the local high of $42,800 seen over the weekend.
Fresh off a promising weekly close, the largest cryptocurrency faced familiar hurdles in the new week, including resuming outflows from the Grayscale Bitcoin Trust (GBTC).
Total outflows for the day amounted to $360 million (according to data at the time of writing). This is a further decrease from the previous daily tally and represents about 50% of the daily peak outflow value.
Today’s #bitcoin Sent from $GBTC/ Grayscale turns out to be around 8.6K $BTC or the equivalent of approximately $360 million.
It has decreased further since last Friday, to about half the amount that was being sent previously.
I think it’s safe to assume that the flow (on both sides) will slowly cool down from here. https://t.co/wEbbkX6eRU pic.twitter.com/2gtai2dYlK
— Daan Crypto Trades (@DaanCrypto) January 29, 2024
On the same day, Bloomberg Intelligence analyst James Seifert further pointed out that more than $5 billion has flown out of GBTC since it was converted into an ETF. In the latest full-day session, January 26, the Spot Bitcoin ETFs saw net inflows of $759 million despite GBTC headwinds.
update of #bitcoin ETF coin tacky derby after Friday (11th).Of which $5 billion $GBTC. The Newborn 9 still offsets these outflows with a total flow of $5.8 billion. Net inflows of $759 million were obtained. The volume continued to drop. pic.twitter.com/QTJqqI4aoA
— James Seyffert (@JSeyff) January 29, 2024
Meanwhile, the company’s iShares Bitcoin Trust (iBIT) ETF held more than 52,000 BTC, worth more than $2 billion, on the day, according to data from asset management firm BlackRock.
The numbers were widely shared on social media, with popular investor Rajat Soni highlighting the scale. implied purchase amount Comparison with daily Bitcoin emissions.
“Currently, only 900 BTC is issued each day. BlackRock customers alone are purchasing 2-5 times the total daily production of BTC,” he calculated.
FOMC holds the key to sudden change in cryptocurrency market reaction
Ahead of a frenetic macro week, Bitcoin price movements have left market participants cautiously optimistic, but sensitive to volatility.
Related: BTC price at FOMC start — 5 things to know about Bitcoin this week
Risk assets are broadly gearing up for the US Federal Reserve’s next interest rate decision, scheduled for January 31st, which was the highlight of the week.
“Currently, the market’s expectation is that there is a 97% chance that the Fed will keep rates unchanged at this meeting, and a 46% chance that the Fed will continue to cut rates at its March meeting,” financial commentator Ted Talks Macro said. I have written Some of the posts on X (formerly Twitter) over the weekend regarding CME Group data. fedwatch tool.
He also predicted that this week’s Federal Open Market Committee (FOMC) meeting will lay the groundwork for rate cuts in March and beyond.
“Overall, I expect this meeting to decide the March decision. And depending on what comes out of Chairman Powell’s mouth, markets could move very quickly.” He concluded by referring to a later press conference by Federal Reserve Chairman Jerome Powell.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
